LMUB vs. VTES

Last updated Jun 21, 2026

LMUB (iShares Long-Term National Muni Bond ETF) and VTES (Vanguard Short-Term Tax-Exempt Bond ETF) are both Municipal Bonds funds - LMUB tracks the ICE AMT-Free US Long National Municipal Index while VTES tracks the S&P 0-7 Year National AMT-Free Municipal Bond Index. Both are passively managed. Over the past year, LMUB returned 9.16% vs 3.31% for VTES. At a 0.48 correlation, their price movements are largely independent. LMUB charges 0.09%/yr vs 0.07%/yr for VTES.

Performance

LMUB vs. VTES - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Long-Term National Muni Bond ETF (LMUB) and Vanguard Short-Term Tax-Exempt Bond ETF (VTES). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LMUB achieves a 2.73% return, which is significantly higher than VTES's 0.76% return.

LMUB

• 1D: 0.46%
• 1M: 2.41%
• YTD: 2.73%
• 6M: 2.76%
• 1Y: 9.16%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VTES

• 1D: 0.10%
• 1M: 0.58%
• YTD: 0.76%
• 6M: 0.97%
• 1Y: 3.31%
• 3Y*: 3.16%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

LMUB vs. VTES - Yearly Performance Comparison

	2026 (YTD)	2025
LMUB iShares Long-Term National Muni Bond ETF	2.73%	3.52%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	0.76%	3.37%

Correlation

The correlation between LMUB and VTES is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.45
Correlation (All Time) Calculated using the full available price history since Mar 18, 2025	0.48

Return for Risk

LMUB vs. VTES — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LMUB

LMUB Risk / Return Rank: 69
LMUB Sharpe Ratio Rank: 71
LMUB Sortino Ratio Rank: 75
LMUB Omega Ratio Rank: 80
LMUB Calmar Ratio Rank: 61
LMUB Martin Ratio Rank: 60

VTES

VTES Risk / Return Rank: 73
VTES Sharpe Ratio Rank: 88
VTES Sortino Ratio Rank: 90
VTES Omega Ratio Rank: 94
VTES Calmar Ratio Rank: 48
VTES Martin Ratio Rank: 43

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LMUB vs. VTES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Long-Term National Muni Bond ETF (LMUB) and Vanguard Short-Term Tax-Exempt Bond ETF (VTES). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	LMUB	VTES	Difference
Sharpe ratio: Return per unit of total volatility	2.20	2.72	-0.53
Sortino ratio: Return per unit of downside risk	3.19	3.93	-0.74
Omega ratio: Gain probability vs. loss probability	1.45	1.63	-0.18
Calmar ratio: Return relative to maximum drawdown	2.93	2.30	+0.63
Martin ratio: Return relative to average drawdown	10.30	6.63	+3.68

LMUB vs. VTES - Sharpe Ratio Comparison

The current LMUB Sharpe Ratio is 2.20, which is comparable to the VTES Sharpe Ratio of 2.72. The chart below compares the historical Sharpe Ratios of LMUB and VTES, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

LMUB vs. VTES - Drawdown Comparison

The maximum LMUB drawdown since its inception was -5.51%, which is greater than VTES's maximum drawdown of -2.42%. Use the drawdown chart below to compare losses from any high point for LMUB and VTES.

Drawdown Indicators

	LMUB	VTES	Difference
Max Drawdown Largest peak-to-trough decline	-5.51%	-2.42%	-3.09%
Max Drawdown (1Y) Largest decline over 1 year	-3.11%	-1.47%	-1.64%
Max Drawdown (3Y) Largest decline over 3 years	—	-1.80%	—
Current Drawdown Current decline from peak	0.00%	-0.52%	+0.52%
Average Drawdown Average peak-to-trough decline	-1.55%	-0.50%	-1.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	0.51%	+0.37%

Volatility

LMUB vs. VTES - Volatility Comparison

iShares Long-Term National Muni Bond ETF (LMUB) has a higher volatility of 1.06% compared to Vanguard Short-Term Tax-Exempt Bond ETF (VTES) at 0.27%. This indicates that LMUB's price experiences larger fluctuations and is considered to be riskier than VTES based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LMUB	VTES	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.06%	0.27%	+0.79%
Volatility (6M) Calculated over the trailing 6-month period	2.97%	0.98%	+1.99%
Volatility (1Y) Calculated over the trailing 1-year period	4.15%	1.24%	+2.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.87%	1.71%	+4.16%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.87%	1.71%	+4.16%

LMUB vs. VTES - Expense Ratio Comparison

LMUB has a 0.09% expense ratio, which is higher than VTES's 0.07% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

LMUB vs. VTES - Dividend Comparison

LMUB's dividend yield for the trailing twelve months is around 3.76%, more than VTES's 2.75% yield.

Position	TTM	2025	2024	2023
LMUB iShares Long-Term National Muni Bond ETF	3.76%	3.14%	0.00%	0.00%
VTES Vanguard Short-Term Tax-Exempt Bond ETF	2.75%	2.77%	2.99%	2.03%

Frequently Asked Questions

Can I hold both LMUB and VTES in my portfolio?

LMUB and VTES have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LMUB or VTES?

LMUB has higher volatility (1.06%) compared to VTES (0.27%). In terms of maximum drawdown, LMUB dropped -5.51% vs VTES's -2.42%.

Which ETF is better, LMUB or VTES?

On 1-year performance, LMUB leads with 9.16% vs 3.31% for VTES. On fees, VTES is cheaper at 0.07% per year. On volatility, VTES has been the lower-risk option at 0.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LMUB or VTES?

Over the 1-year period, LMUB has performed better with a 9.16% return vs 3.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LMUB or VTES?

VTES is cheaper with a 0.07% expense ratio, compared with 0.09% for LMUB.

Which ETF pays a higher dividend yield, LMUB or VTES?

LMUB has the higher dividend yield at 3.76%, compared with 2.75% for VTES.

What is the main difference between LMUB and VTES?

LMUB tracks ICE AMT-Free US Long National Municipal Index, while VTES tracks S&P 0-7 Year National AMT-Free Municipal Bond Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.09% for LMUB and 0.07% for VTES.

Which has better risk-adjusted returns?

VTES currently has the higher Sharpe Ratio (2.72 vs 2.20), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.